Want to be long EURCAD?
Testing major support at 1.3450, the EURCAD currency pair looks ripe for a move higher in New York afternoon trade. Although there are resistance barriers above, technical indicators are siding with some short term upside momentum.
With a potential tweezer formation (what’s a tweezer?) in the works, the technical picture looks promising. Major oscillators are supportive of a move higher – with Stochastic showing completely oversold conditions. MACD is also displaying a steep bullish convergence.
As a result, we anticipate a move higher to initial resistance at 1.3481 (25 SMA) before a break to 1.3500 (50 SMA) resistance. Medium term targets are set for 1.3525 (38.2% fib from 1.3653-1.3453 bear wave). Any penetration below current support at 1.3450 would negate the upside potential and set targets lower to 1.3400 support.
Hello,
How do I trade the EUR/CAD during NFP and also during a canadian news release. I mean do I sell EUR/CAD during NFP or buy. And during Canadian news do I sell or buy the EUR/CAD. Thanks
A good question, but one that I can’t really address in this forum. One thing to keep in mind though, is that EURCAD is a cross currency, so it won’t react in the same fashion as the major currencies (like EUR, JPY or GBP). But, I will follow both EURCAD and USDCAD when trying to make a decision to trade in either one.